Demand for housing support payments has more than trebled in Wales since the bedroom tax was introduced

The bedroom tax and welfare changes have led to the 250% rise in demands for Discretionary Housing Payment help

Dozens of people marched in Cardiff earlier this year to protest against the controversial bedroom tax, which they argue is “unfair”

Demand for housing support funds in Wales have more than trebled since the government introduced its controversial bedroom tax.

The Welsh Local Government Association (WLGA) confirmed that demand for Discretionary Housing Payment (DHP) – used to help those on housing benefits struggling with costs – has risen by 250% in the last financial year.

The fund has been in place since 2001 but since the bedroom tax was introduced in April 2013 many councils have used it to help tenants struggling with the cut to their housing benefit.

In Wales the bedroom tax has accounted for 50% of the money that councils have allocated as part of DHP in the last financial year.

The funds from central government have also posed problems for councils who receive different amounts.

Caerphilly, Merthyr Tydfil, Torfaen and Wrexham rank as some of the worst places in the UK when it comes to the amount of DHP they receive from the government compared to how many people need help with the bedroom tax. Ceredigion and Gwynedd have a much better allocation.

The amount each tenant is docked depends on where they live, ranging from £15.16 a week in Cardiff, to £11.56 in Blaneau Gwent depending on the price of rent in the area.

A spokesman from Merthyr Tydfil said: “The DHP funding is not just for ‘Bedroom Tax’ but for all tenants and has been in existence since 2001. The additional pressures of Welfare Reform has caused Central Government to increase the allocation considerably due to the significant pressures Welfare Reform is causing claimants.”

A spokesman for Ceredigion confirmed that the council was one of three Welsh Authorities (the other two being Powys and Gwynedd) that were allocated additional DHP funding in the 2013/14 financial year to assist with the impact of the bedroom tax.

He said: “This additional funding was in recognition of the rural nature of the county and the scarcity of alternative accommodation of an appropriate size.”

The government announced that it would set aside £60m of the £165m fund this year to help those struggling with the cut.

Many of those hit by the cost of their spare rooms do not apply for DHP and so are missing out on the extra help.

A statement from the WLGA said: “Local government in Wales is doing all in its power to offer temporary financial relief to those affected by the ‘bedroom tax’, particularly to those who are most vulnerable.

“As with all discretionary schemes, variations do exist across Wales in terms of the level of funding that can be made available, but what has remained consistent is the unprecedented rise in the number of people applying for financial support to help them meet their housing needs.

“Also a small number of Welsh councils were allocated an additional amount of DWP funding to meet the needs resulting from rural impacts which will also be reflected in the variations”.

“Local councils in Wales have already experienced a 250% rise in the number of applications they are receiving for discretionary housing payments, much of which is being fuelled by the bedroom tax reform and has accounted for over 50% of the Wales DHP spend for the financial year 2013/2014.

“A number of councils are already dipping into their dwindling financial reserves or applying for further funding to help meet demand in their area, and the most worrying thing is that there simply is no infinite ‘pot’ of funding available to support this.

“While councils will continue to support those people who are most in need, there is growing concern over what will happen when these time-limited and unsustainable payments actually run out.”

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